Supply and Demand - An Inconvenient Truth.
My Dad always explained it like this:
- There is one plumber in town
- He is really busy and is able to raise his prices
- He buys a Lambo (Dad didn't say this)
- Other people see this and they also want to be a plumber
- They go to Plumber School.
- Now there are 10 plumbers in town.
- There are only 9 backed up toilets at any given time
- The plumbers are cutting their rates and looking for work
- Nobody wants to go to plumbing schoool
- Eventually, there is one plumber again.
- Repeat
It is an oversimplification, but I like it for just that reason.
You can replace the word plumber with Authors, Artists, Thoughtful Bloggers, Singers..
If money wasn't "A thing" the plumber would still be needed, and people who need him would try to gain favor with him as long as his services were needed or desired.
Before Money the tie-breaker was brute force.
Some say they would prefer "First come first serve".
That is unfair to the old and the slow, and it creates situations like "Black Friday", where people stampede to get cheap things. It might even be a factor in Steem's current distribution.
There will always be Supply and Demand and some form of cultural solution to get the things that many want.
There are 736,566ish Steem printed per reward pool.
There are a lot of people here who want to earn those Steem.
If the price goes down, more people want to sell them then hold them.
(not enough demand)
They are earning Steem through blogging, singing, cleaning, memeing, programming, selling, renting, etc.
Exactly the way humans treat things of value
Looks like we are starting to build an economy to me!
